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TNB Records Higher Earnings Following Resolution of Fuel Cost Sharing Mechanism

11/04/2012

Kuala Lumpur, 12 April 2012 - Tenaga Nasional Berhad (TNB) today announced a net profit of RM2,815.2 million for the 3 months period ended 29th February 2012 (2QFY12) mainly from the fuel cost compensation received of RM2.023 billion. Excluding the fuel cost compensation, TNB recorded a net profit of RM1,298.2 million as compared to a net loss of RM224.7 million reported in the previous quarter.

The improvement in the Group’s performance for the Quarter was principally attributed to the receipt of the fuel cost compensation payment, lower usage of alternative fuels and the strengthening of the Ringgit.

Summary of highlights:

3 months ended 29th February FY2012 (2nd Quarter)

- Net profit of RM2,815.2 million - Recognition of fuel cost compensation of RM2.023 billion from Petronas and the Government - 0.8% decline in Group Revenue compared to 1st Quarter 2012 against a 10.5% decline in Operating Expenses - Average coal price of USD108.5/mt - EBITDA margin at 49.0% as compared to 15.1% reported for the previous quarter

6 months FY2012

- Net profit of RM2,590.5 million - 14.7% increase in Group Revenue against a 20.5% increase in Operating Expenses - Average coal price of USD109.3/mt - 4.1% Unit electricity demand growth in Peninsular Malaysia - EBITDA margin at 32.0% as compared to 26.2% reported for the corresponding period in FY2011

The Group’s performance in the 2nd Quarter FY2012 compared to 1st Quarter FY2012 recorded a 0.8% reduction in revenue from RM8,694.4 million to RM8,628.2 million due to the slower period over the festive holidays. However, the Group’s operating expenses has also declined by 10.5% from RM8,491.8 million to RM7,599.0 million in the 2nd Quarter from lower usage of alternative fuels.

Comparing the Group’s performance for the six months period FY2012 against the corresponding period in FY2011, operating expenses increased from RM13,351.6 million to RM16,090.8 million for the current period, representing an increase of 20.5%. The increase was mainly attributed to higher generation cost from higher usage of alternative fuels and higher average price of coal and increased coal consumption.

The average price of coal during the 1HFY2012 of USD109.3/mt as compared to USD100.0/mt in 1HFY2011, reflected a 9.3% increase over a 12 months period. The coal consumption had also increased by 9.9% from 9.1 million metric tonnes in 1HFY11 to 10.0 million metric tonnes in 1HFY12. This has caused the EBITDA margin to decline from 26.2% in FY2011 to 20.3% (excluding the fuel cost compensation) in FY2012.

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